Granular Urea Prices Rose in the Week Ending September 29
In the past few weeks, we’ve observed upward momentum in urea prices. China is the largest urea producer. According to industry reports, it’s undergoing capacity rationalization. As a result of the rationalization, urea prices have started to improve. Let’s look at the last week’s performance below.
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In the above chart, the prices at the Yuzhny location are for prilled urea, while the other three locations show the prices for granular urea.
Prilled urea prices rose 2.4% week-over-week to $254 per metric ton from $248 per metric ton in the previous week.
In contrast, granular urea prices at all three locations in the above chart fell week-over-week. Granular urea prices in the Middle East fell as much as 4.7% week-over-week to $246 per metric ton from $248 per metric ton a week ago.
Movements in the US
Similarly, granular urea prices at the NOLA (New Orleans) location fell as much as 4.5% week-over-week to $213 per metric ton from $223 per metric ton. Companies (MOO) like CF Industries (CF), CVR Partners (UAN), PotashCorp (POT), and Terra Nitrogen (TNH) are active in the US Cornbelt region. In this region, granular urea prices fell by 73 basis points week-over-week to $248 per metric ton from $249 per metric ton.
It’s important to watch energy costs like natural gas. Movements in energy prices can impact nitrogen fertilizers’ overall prices.
In the next part, we’ll discuss natural gas prices.